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1 million people using new mobile payments service

1 million people using new mobile payments service

Category: Banking

Updated: 07/08/2014
First Published: 07/08/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Payments Council has just released its update on Paym, the new mobile banking service that offers a secure way to pay using just a mobile phone number. Well, more than 1 million people have so far registered to use it – are you one of them?

If not, it could be time to get on board. The figures show just how popular the service – and mobile banking as a whole – is becoming, with the 1 million milestone being reached within 100 days of Paym's launch on 29 April. The millionth registration took place on 31 July, and so far over £6.5m has been sent using the service.

The figures also highlight a sharp increase in consumer awareness and confidence in mobile payment services – awareness of such services stood at 45% before the launch of Paym, but just a week after its launch this had rocketed to 75%. Of those already using Paym, 65% are confident in its ability to offer a safe, secure way to transfer money between contacts.

Jemma Smith, director of communications & education at the Payments Council, said:

"It's hugely encouraging that one million people have chosen to register for Paym already, but this milestone only marks the start of growth in the service. I think that securely paying back friends and family using just their mobile number will become second nature – and we'll wonder why we ever did anything else.

"The next big step forward is more banks and building societies joining before the end of the year, and as a result we look forward to millions more people signing up and using the service."

What is Paym?

In a nutshell, Paym – pronounced "pay 'em" – is a way to securely transfer money to family and friends (or whoever you wish) using just a mobile phone number. As long as both parties are registered with the service you can transfer at will, without needing to worry about finding account numbers and sort codes.

It's totally secure, too. The service is integrated into your current mobile banking app so it's fully password protected, and there'll be additional confirmations/password inputs required before the money actually leaves your account.

Customers of Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB have been able to use the service since April, and later this year Paym will expand further. RBS, NatWest, Clydesdale Bank, first direct, Isle of Man Bank, Ulster Bank, Yorkshire Bank, Nationwide
and Metro Bank are all expected to join in the next few months, meaning the service will soon be available to more than nine in 10 current account holders.

How it works

  • First up, you'll need to register with the service. All you have to do is register your mobile number and select the current account you want to receive payments into – in essence, you're linking your current account with your phone number. It's as simple as that, and from then on there's no need for the person sending you money to know sort codes or account numbers.
  • If you're sending a payment, you'll simply need to enter your friend's mobile number (either manually or from your phone's contact list) and confirm the name or provide a reference/password. Then, just check the amount and press send.
  • Voila! Your friend will receive the cash directly into their account, and you'll get confirmation that the payment went through. It's also the same process when you're the receiver, so all you'll need to do is sit back and wait for the money to appear in your bank account.

Join the mobile banking revolution

Given that over 1 million people are already on the mobile banking bandwagon, isn't it time you joined them? Of course, before you take the plunge and get registered, it may be worth considering the alternatives.

Pretty much all banking providers offer mobile banking of some kind these days, so that shouldn't be the only thing tying you to your account. If you're not happy with the service, the terms and conditions, perks or overdraft rates, why not look elsewhere?

These days there are accounts to suit all lifestyles, from completely fuss-free accounts to those that come as a package deal with the likes of travel and gadget insurance thrown in. You can even find high interest accounts that could prove to be a great alternative to a regular savings account – the choice is yours!

Online banking has the power to transform your everyday banking activity. It's a quick, simple and hassle-free way to manage your money, and this new service could add a whole other level of convenience. So, make sure you use our handy comparison tool to find the bank account that could be right for you, and then all you've got to do is embrace the mobile banking revolution!

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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